JPMorgan Says Biden Victory Could Mark a Stock Market Shift

  • Strategists are ‘warming’ to possible move to value, Europe
  • A win for Joe Biden wouldn’t be negative for markets: JPMorgan
WATCH: JPMorgan‘s Mislav Matejka says bond yields could “grind higher” with a Biden win, removing an impediment to a rotation into underperforming value stocks. (Source: Bloomberg)
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A victory of Democratic nominee Joe Biden in the U.S. presidential election could herald the start of a rotation toward parts of the equity market that have been left behind by the rally, according to strategists at JPMorgan Chase & Co.

“We need to get through U.S. elections event-risk first, but there could be a broadening in styles and in regional performances thereafter,” said JPMorgan strategists led by Mislav Matejka in a note on Monday. “A potential Biden victory should not be seen as a negative for markets, and could in fact lead to an internal rotation.”